The document indicating to the customer that the seller is reducing the amount owed by the customer is:

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A credit memorandum is a document provided by the seller to the customer indicating a reduction in the amount owed. It typically contains information such as the reason for the credit, the amount of the credit, and the new balance owed by the customer. Sales discounts are offered to incentivize prompt payment, sales returns and allowances are for returns or allowances granted for merchandise that has already been sold, and a schedule of accounts receivable is a listing of all the amounts due from customers. Only a credit memorandum specifically addresses a reduction in the amount owed by the customer.

The Document Indicating to the Customer That the Seller Is